SEBI has announced new measures to strengthen the Equity Index Derivatives Framework aimed at enhancing investor protection and market stability.
🔍 Key Highlights:
1️⃣ Upfront Collection of Options Premium – Mandatory from Feb 1, 2025, ensuring proper risk management for options buyers.
2️⃣ No Calendar Spread Benefit on Expiry Days – Set to reduce volatility and speculative risks, effective Feb 1, 2025.
3️⃣ Intraday Monitoring of Position Limits – A new layer of surveillance, starting Apr 1, 2025, will ensure compliance in real-time.
4️⃣ Increase in Contract Size – Derivative contracts to have a minimum value of ₹15 lakhs, aligning with market growth (effective Nov 20, 2024).
5️⃣ Rationalization of Weekly Index Derivatives – To limit weekly expiries to one benchmark index per exchange from Nov 20, 2024.
6️⃣ Additional Tail Risk Coverage on Expiry Days– An additional 2% margin on short options from Nov 20, 2024, to mitigate risk.
Happy Trading😇
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